Mozambique’s Financial Intelligence Unit (GIFiM) has raised the alarm over deficiencies in the prevention and detection of money laundering in the real estate sector, identifying suspicious transactions amounting to approximately 5 billion meticais between January 2021 and November 2025. The agency is calling for an integrated property transfer database, stronger supervision, and tougher penalties for offenders.

The findings are contained in a strategic analysis report, cited by Lusa, which points to shortcomings in the reporting of suspicious transactions and in the sharing of information among the various entities operating in the sector.

Of the 851 real estate entities identified as active in the country in 2025, only 234 were registered with GIFiM, equivalent to 27.5% of the total. The agency also noted failures by real estate agencies, land registries, and notaries to comply with mandatory reporting obligations.

According to the report, these gaps reduce the authorities’ ability to identify suspicious transactions, trace the origin of funds used in property acquisitions, and assess the true scale of the phenomenon.

GIFiM acknowledges that the amounts identified may fall short of reality, given the low level of reporting by entities subject to the obligation.

The absence of an integrated database on property transfers, limited involvement by land registries and notarial services, and restricted access to tax and municipal data also hamper the cross-referencing of information needed for financial investigations.

In 2025, Mozambique recorded a total of 4,639 reports of suspicious money-laundering transactions.

To address these weaknesses, GIFiM advocates risk-based supervision, closer monitoring of real estate transactions, and mechanisms to verify the provenance of funds used in property purchases.

The agency also recommends stricter sanctions and more effective coordination among supervisors, criminal investigation bodies, the tax authority, municipalities, land registries, and other relevant stakeholders.

The warning comes as Mozambique seeks to consolidate its anti-money-laundering framework following its removal from the Financial Action Task Force (FATF) grey list.

In March, the Ministry of Finance indicated that the country would be expected to demonstrate, by September 2027, the progress achieved since its removal from the list. On that occasion, GIFiM Deputy Director-General Luís Cezerilo called for the development of a sustainable system underpinned by robust institutions and qualified human resources, to avoid a return to enhanced monitoring.

Mozambique was placed on the FATF grey list in October 2022 due to deficiencies in combating money laundering and terrorist financing. The decision was announced by FATF on 21 October of that year. Its formal removal from the list was confirmed on 24 October 2025, at a plenary session held in Paris.